# Taxes Subsumed in GST
## Guiding Principles for Subsumption
While deciding which taxes should be merged into GST, the following principles were applied:
1. Only indirect taxes on supply of goods or services should be subsumed.
2. Taxes should form part of the transaction chain — from import/manufacture/provision up to consumption.
3. Subsumption should enable free flow of tax credit across intra-state and inter-state levels. Unrelated levies are excluded.
4. Revenue fairness for both Union and States, individually, must be attempted.
## Central Taxes Subsumed
- Central Excise Duty & Additional Excise Duties
- Service Tax
- Excise Duty under Medicinal & Toilet Preparation Act
- CVD (Countervailing Duty) and Special CVD
- Central Sales Tax (CST)
- Central Surcharges & Cesses (in so far as they relate to supply of goods & services)
## State Taxes Subsumed
- State Surcharges and Cesses (in so far as they relate to supply of goods & services)
- Entertainment Tax (except those levied by local bodies)
- Tax on lottery, betting and gambling
- Entry tax (all forms) & Purchase tax
- VAT / Sales Tax
- Luxury Tax
- Taxes on advertisements
## Important Carve-outs (NOT Subsumed)
- Customs Duty — continues as a separate levy on imports/exports.
- Entertainment Tax levied by local bodies — not subsumed.
- Taxes on petroleum products (motor spirit, HSD, ATF, crude, natural gas) and alcoholic liquor for human consumption — outside GST currently.
- Stamp duty — continues.
## Memory Aid
| Category | Key Items |
|---|---|
| Central Subsumed | Central Excise, Service Tax, CVD/SCVD, CST, Central Cesses |
| State Subsumed | VAT, Luxury Tax, Entry Tax, Entertainment Tax (non-local-body), Lottery/Betting Tax, Advertisement Tax, Purchase Tax |
| NOT Subsumed | Customs, Stamp Duty, Petroleum/Alcohol Taxes, Entertainment Tax by local bodies |